Market and competition competes with both national and regional consumer electronics retailers throughout Russia, as well as against niche specialist retailers such as computer, telecom and/or photography stores. We demonstrate high growth rates in sales due to our superior sales technologies and high standards of customer service.

With an overall growth of 30% versus a market development of 22% (GfK source) in 2011 proved its leadership both in the Consumer Electronics specialists, CES (nationwide federal chains) area as well as in the total Consumer Electronics market. We obtained even more remarkable result in our high season in the forth quarter of 2011 outperforming all our competitors with 28% sales increase against 10% growth in the market (GfK source).

2011 was the year of the absolute market leadership consolidation over all the categories for, with a total market share of 25.5% in the CES channel and 12.4% in the total market (company estimate).

All categories showed a great performance, but this market share improvements is due to the following outstanding accomplishments.

We achieved a dominant position in Flat TVs business after growing our market share to a record level of 25.7% of the total consumption. In 2011 we sold more than one million seven hundred thousand TV sets through our network, the highest benchmark in the Russian CE retail.

For the first time in history, became a market leader in the Large Home Appliances (LHA) market with a total market share close to 20%. “Trade-in”, “Installation free of charge” and other campaigns and vendor sponsored activities were quite successful making the LHA category one of our best performers.

The third pillar of our strong performance became Small Home Appliances (SHA), where we had the highest gain in share of more than 2%, with a final total market share of 24%.

The overall competitive environment in 2011 for the federal retail chains remained unchanged with the three companies which altogether consolidated this channel. leads this top three group based on its superior top line growth demonstrated in 2011.